II Editor
21 Apr 2017
NEW ARTICLE: Stockwatch: A classic value investment "What does it take for LSE:NXR:Norcros to break out of a stubbornly sideways trading range? This £105 million FTSE Small-Cap manufacturer of showers, taps, bathroom accessories, tiles and adhesives, is in a genuine commercial space: capitalising ..."[link]
nk1999
13 Apr 2017
Re: Pre close trading statement HB,"As I see it, double the share price and this would still look an appealing investment case. "That seems to be roughly in line with 300p target that Numis have put on NXR today.nk
bizana
13 Apr 2017
Broker reaction Norcros plc (NXR) Rating Reiterated by Numis Securities Ltd April 12th, 2017 • 0 comments • Filed Under • by ABMN Staff inShare. Norcros plc logoNorcros plc (LON:NXR)‘s stock had its “buy” rating reissued by stock analysts at Numis Securities Ltd in a research report issued to clients and investors on Wednesday. They presently have a GBX 300 ($3.73) target price on the stock. Numis Securities Ltd’s price target would suggest a potential upside of 97.37% from the company’s previous close.
Rusty Jock
12 Apr 2017
Re: Pre close trading statement Agree the SA business is doing ok . These results were helped by the SA rand which appreciated strongly in the period .The underlying SA sales growth of 8% will be swamped by the recent 10% slump in the Rand when they next report .So despite the volatility in the SA contribution when converted to Sterling , I think the SA business is sound for now .
Hardboy
12 Apr 2017
Pre close trading statement Looks very good. How long can markets ignore this company's fundamentals?Turnover is up nearly 15%, slightly ahead of broker forecasts. the second half was stronger than the first. Despite the troubles, South Africa seems to be performing very well (reported sales will be up over 22%. At constant foreign exchange that drops to 8.4% which is still good.) Net debt has come down significantly. The quote is they have a "well managed Pension Situation." They say operating profits will be in line with forecasts.Brokers' forecast suggest an EPS of 28.38p. At yesterday's close that gives us a PE of 5.5. With a profitable, business growing like NXR I would expect it nearer 20. The final dividend invariably is double the interim, which would give a full year dividend of 7.2p - a yield of 4.6%; and this is with a cover of almost 4. As I see it, double the share price and this would still look an appealing investment case. Is it still the pension deficit which is holding it back? Or is it South Africa? There may be political problems there, but with Trump looking for infrastructure spending, and China continuing its thirst for minerals, the economy there, which is largely dependent on its mineral wealth, should have a positive outlook. It is the largest economy in a huge continent.
seadoc
30 Mar 2017
Re: Price fall The speech at burial of Ahmed Kathrada was er.. uhm.. interesting to say the least. I think this is the trigger to the drop in Rand. Still holding NXR.Regards,Seadoc
foolish learner
28 Mar 2017
Re: Price fall I don't disagree that the fall in the Rand will have an impact, but it has only fell to the lows it was earlier this month, but how a share can loose so much on less than half the daily average volumes may mean games are being playedFL
casabanker
28 Mar 2017
Re: Price fall What a pity for both South Africa and Norcross. It looks as though SA bonds will drop to junk status and the country as a whole will become much poorer. The knock on to NXR is obvious. Casa.
Rusty Jock
28 Mar 2017
Re: Price fall I suspect yesterday's share price drop may have been due to the sharp drop in the SA Rand which fell about 4% on the day . Zuma has recalled Fin Minister Gordhan from an important overseas trade promotion trip and political commentators are speculating that Zuma will sack him or sideline him . This would be disastrous for the Rand and yesterday's 4% drop could turn out to be a rout very quickly and wipe out the 10% currency gains seen this year .Zuma is expected to announce a cabinet reshuffle this week sometime .
casabanker
23 Mar 2017
Re: Price fall Here we go again. The dip in the price today of over 4% was unexpected and happened late on in the trading day. Again there is no news and the volume of trades in unremarkable. It maybe a short term blip but it is tiresome when the fall doesn't seem warranted. I have listened to the CEO's video again about the six month's results to last September I think. Cash flow, turnover, ROCE, aquisitions and organic growth all doing well. I have reduced my holding reluctantly just after my last post. This year my concentration and aim has changed from income/yield and capital growth if possible to capital preservation. Individual company stocks have been sold down in favour of low yielding investment trusts, growth trusts, precious metal ETF's and emerging market funds. They are not exciting but they do hold value. I say they are not exciting but check out MPO and GCL which I hold.. Casa.
Hardboy
21 Mar 2017
Re: Hardboy I suppose the pension deficit is still one factor weighing on the share price.As for lack of news flow - it is frustrating waiting to hear; but as long as the company reports when it needs to, we can not expect any more. I knew that companies had to report any material development which are likely to have an effect on the share price, but I had not realised this includes if results are likely to vary from brokers' forecasts by more than 10%; and it has to be released within 24 hours of the company knowing of it. So, having just checked brokers' forecasts, that looks like the EPS should be fairly flat, but still allow a significant hike in dividend. Good to hear the SA house building is thriving.
bizana
21 Mar 2017
Hardboy I share your sentiments and also note a big institutional sell, Wonder who took up 40M shares?Have just returned from SA. Economy grew 1% in 2016 as against Goverment projection of 5%. Yet not all bad news. Huge amount of housing construction for the disadvantaged. That can only be good for sales of tiles and adhesives. Interestingly I could not find evidence that NXR sells showers etc in SA. The rand has strengthened significantly against the pound. This should translate into much improved earnings for 2016. So, if there's a problem, maybe its at the UK end. If the SA results are not as they should be I, as a v long term holder, will be heading for the exit.One final comment/criticism - the hopeless lack of information, apart from their statutory duties, by the Board of NXR
Hardboy
14 Mar 2017
Re: hmmmm I share everyone's frustration & concerns, and it is hard to understand why the share price stays so low. I thought it looked a bargain in the middle of 2014 @ 195. The company consistently raises sales, profits have not been smooth progress, but the overall trend is most definitely up. Dividends have been increasing too.It has a PE of around 7.5, and a yield comfortably over 4%. any comparative anyone cares to make, it is undervalued. I guess there are concerns about the SA economy, though I see it has just overtaken Nigeria as its continent's largest economy; and with the general trend in demand for minerals increasing it should improve. The UK housing market is still buoyant. Where's the problem?
BUTEBOY
14 Mar 2017
hmmmm one of my biggest holdings.....I have held these for around eight years but I am very disappointed with the share price.As the song says "should I stay or should I go now?"
seadoc
07 Mar 2017
Re: Price fall casa," I think the pension deficit will shrink significantly over the next year as bond yields rise"Too true. I had money in BT on that basis, it was essentially an "investment Trust" but paid better dividends than most. I sold on the prediction of dividend cut. I hold NXR on the same basis (plus I really like my Triton shower.)Do you want yield or capital growth? I like and aim for both. I have some real bonzo shares, DPP still making a loss but best performer on a 12 month basis, others too embarrassed to mention but might get there and about 1/3 of my ISA cash in REIT either the shares or the bonds earning 6% to fund retirement. Sort of like your HICL but time limited. I saw NXR as a half way house, still hold.Regards,Seadoc
